Withholding ("Pay-as-you-earn")
Money, for example, that employers withhold from employees paychecks. This money is deposited for the government. (It will be credited against the employees' tax liability when they file their returns.) Employers withhold money for federal income taxes, Social Security taxes and state and local income taxes in some states and localities. Total withholding amounts are listed on the W2 form that the employer issues at the end of the tax year.
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